Investors will get their first opportunity to get a piece of the social networking pie when LinkedIn begins trading on the New York Stock Exchange (NYSE) this Thursday under the symbol LNKD.
LinkedIn does not have nearly the popularity of the other much talked about social networking website Facebook which now boasts 600 million members, but it does have 100 million members, is known as THE professional networking website to go to for job hunting and recruiting, and has been getting more attention as it adds new features that look a little bit like,…Facebook. Note, for example the “What’s on your mind” and “People you may know” features.
And LinkedIn is making more money. Net revenue in 2010 was $243 million, twice the net revenue for 2009, and net income in 2010 was $15.4 million, compared to a $4 million loss the prior year.
Analysts say LinkedIn will do when it debuts on the NYSE this week, although they warn it is not in the same league as Facebook.
Tom Taulli, author of “All about short selling”, says “people get a lot of value out of using LinkedIn, but it doesn’t seem to carry the same Pizzaz. This won’t give us the best indication how crazy people might go over some over some of these other deals.” Taulli has also written “Investing in IPOs.”
Facebook and Twitter have both been selling shares on the private market as they get ready for their IPO in 2011 or later.